Guaranteed Annuities

Guaranteed Fixed/Level – A guaranteed and maximised annuity income that will remain level from outset. Not protected from the future effects of inflation.

Escalating – A lower starting income than a level annuity but with a guarantee to increase at a given percentage annually. Not necessarily protected from the future effects of inflation.

Index-linked – A lower starting income than a level annuity but with a guarantee to fluctuate in line with the changes in the Retail Prices Index. Can be capped at a maximum percentage increase.
Non Guaranteed Annuities

With-Profits – Income dependent upon the performance of the underlying with-profits fund. The income can rise or fall dependent on performance on an annual basis.

Unit-linked – Income dependent upon the performance of the underlying chosen investments. The income can rise or fall dependent on performance with each payment.
Death benefits

Guarantee Period – Payments guaranteed for selected number of years regardless of survival. If you outlive the guarantee period, payments will continue until death.

Value Protection – A lump sum equal to the original purchase price less payments received to date of death is paid on death before age 75. If a joint life annuity is purchased, this would apply to the later of the two deaths before age 75.

Spouse, Civil Partner, Dependant’s Pension – An income for your spouse, civil partner or dependant payable on your death, which is equal to a chosen percentage of your income.